The Effect of Competitive Advantage on Core Competence and Organizational Performance of Thailand’s Construction Business

Abstract

This research aims to study the Effect of Competitive Advantage on Core Competence and Organizational Performance of Thailand’s Construction Business. Sample is employee working for subcontractor company in construction business that registered with the Department of Industrial Works with a total of 152 companies. The selected sample was 100 employees at the managerial level. This research is quantitative research, research tools were questionnaire and analysis included Average, Standard Deviation and Structural Equations using PLS Graph 3.0 Program.
The result was core competency’s average value is at a high level, considering by item it was found that core competency on attribute average value is the highest level. For competitive advantage factor, found that average value is at a high level, by each item, it was found that competitive advantage of quickly customer respond & service average value is the highest. For organization’s performance factor, it was found that average value is at high level, by each item, it was found that production capacity average value is the highest.
The results of the structural equation analysis showed that the core competency did not significantly affect the organization performance with statistical significance at 0.10, coefficient 0.024 (t = 0.371). The core competency has direct influence on competitive advantage with the statistical significance at 0.01, coefficient 0.618 (t = 7.562) and the competitive advantage has a direct influence on the organization performance with statistical significance at 0.01, coefficient 0.828 (t = 14.148). The core competency has an indirect effect on organizational performance at coefficient 0.512.